Toronto-Dominion Bank sells notes, preferreds; Coca-Cola, CIBC in market; credit spreads firm

By Cristal Cody

Eureka Springs, Ark., Aug. 29 – Toronto-Dominion Bank tapped the U.S. high-grade market with a $1 billion notes offering and also brought an upsized C$1 billion preferred share deal on Monday.

Toronto-Dominion Bank sold $1 billion of 1.45% notes due 2018.

The bank also priced C$1 billion of non-cumulative rate reset preferred shares with a 4.85% annual dividend for the initial period ending Oct. 31, 2021.

The bank sold 40 million shares of the series 14 non-viability contingent capital preferred stock in the offering, upsized from C$300 million, or 12 million preferreds.

Also, Coca-Cola Co. planned to price five- and 10-year senior notes (Aa3/AA-/A+), and Canadian Imperial Bank of Commerce offered fixed- and floating-rate notes in two tranches.

The Markit CDX North American Investment Grade index closed about 1 basis point tighter at a spread of 71 bps.

In the secondary market, Barclays plc’s 3.2% notes due 2021 priced at the start of the month traded about 1 bp weaker early Monday but remain more than 20 bps tighter than issuance.

Duke Energy Corp.’s 3.75% senior notes due 2046 eased about 1 bp and are trading about 4 bps better than where the bonds priced earlier in August.

TD Bank prices $1 billion

Toronto-Dominion Bank priced $1 billion of 1.45% series A senior medium-term notes due Sept. 6, 2018 (Aa1/AA-/) at 99.982 to yield 1.459% on Monday, according to an FWP filing with the Securities and Exchange Commission.

The notes priced with a spread of 65 bps over Treasuries.

TD Securities (USA) LLC and Morgan Stanley & Co. LLC were the bookrunners.

The bank and financial services company is based in Toronto.

Barclays softens

Barclays’ 3.2% notes due 2021 were seen about 1 bp softer at 188 bps offered earlier on Monday, according to a market source.

Barclays sold $1.35 billion of the notes on Aug. 3 at a spread of 215 bps plus Treasuries.

The financial services company is based in London.

Duke Energy eases

Duke Energy’s 3.75% notes due 2046 traded about 1 bp weaker at 146 bps offered in the secondary market, a source said.

The notes (Baa1/BBB+/BBB+) priced on Aug. 9 in a $1.5 billion tranche at 150 bps over Treasuries.

The diversified energy company is based in Charlotte, N.C.

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